DocuSign (DOCU) closed at $64.67 in the latest trading session, marking a -4.56% move from the prior day. The stock's change was less than the S&P 500's daily loss of 0.92%. Elsewhere, the Dow saw a downswing of 1.18%, while the tech-heavy Nasdaq depreciated by 0.84%.
Coming into today, shares of the provider of electronic signature technology had lost 0.25% in the past month. In that same time, the Computer and Technology sector gained 1.64%, while the S&P 500 gained 1.48%.
The upcoming earnings release of DocuSign will be of great interest to investors. The company's earnings report is expected on December 4, 2025. The company is forecasted to report an EPS of $0.92, showcasing a 2.22% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $806.13 million, showing a 6.8% escalation compared to the year-ago quarter.
DOCU's full-year Zacks Consensus Estimates are calling for earnings of $3.69 per share and revenue of $3.2 billion. These results would represent year-over-year changes of +3.94% and +7.34%, respectively.
Investors should also pay attention to any latest changes in analyst estimates for DocuSign. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Currently, DocuSign is carrying a Zacks Rank of #2 (Buy).
In the context of valuation, DocuSign is at present trading with a Forward P/E ratio of 18.36. This valuation marks a discount compared to its industry average Forward P/E of 28.7.
We can additionally observe that DOCU currently boasts a PEG ratio of 1.24. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Internet - Software industry had an average PEG ratio of 2.1 as trading concluded yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 66, putting it in the top 27% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Docusign Inc. (DOCU): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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